The comet. (Johnson City, Tenn.) 1884-1916, 1887-12-15


II such an emergency arises, there
now exists no clear and undoubted ex-
eCutive power of relief. Heretofore
the redemption OF per cent. bonds
which were payable ut the option oI
the Government, has afforded means
for disbursement Of the excess Of om
revenues; but these bonds have all
been retired, and there are no bond.
outstanding the payment of which we
have the right to insist upon. The
to the sinking fund
which furnishes the occasion for ex-
penditure in the purchase of bonds
has been already made for the current
year, so that there is
NO OUTLET IN THAT DIRECTION.
In the present state of Legislation
the only pretense Of any existing exec
utive power to restore 1T this TIME
any part of our surplus revenue to tht
people by its expenditure consists i;
the supposition that the Secretary %
the Treasury may enter the marke
and purchase the bonds of the Gov
ernment not yet due at rate of pre-
MUM to be agreed upon. The onl!
provision Of law from which such /
power could he derived is found in al
appropriation bill passed a number o.
years ago; and it is subject to the eus
picion that it was intended as tempo
rary and limited in its application, in
stead of conferring a continuing dis
cretion and authority.
No condition ought to exist which
would justify the grant OF power to :
single official, upon his judgment o
its necessity, Withhold from or release
to the business Of the people, in an un
usual manner, money held in tn,
Treasury and thus effect, at his vii
the financial situation OF the country
and
If 1T is DEEMED WISE
to lodge in the Secretary of the Treas
ury the authority in the present junct
ure to purchase bonds it should b
invested and provided, rs far rs posSi
BILE, with such checks and limitation
Ms will define this officials right an,
discretion, and at the same time re
lieve him from undue responsibility
In consideration Of the question q
purchasing bonds as means of restoI
ing to circulation the surplus none,
accommodating in the Treasury, j
should be borne in mind that premi
ums must, OF course, be paid upo
such purchase, that there may be
large part of these bonds held rs in
vestments which cannot be purchase
at any price, and that combination
among holders who are willing to sell
may unreasonably enhance the cost c
such bonds to the Government.
1t has been suggested that the pre-,
ent bonded debt might be refunded a
u less rate of interest, and the differ
ence between the old and new secul
ity
PAID IN CASH,
thus finding use for the surplus in tn
Treasury The success of this plan,
is apparent, must depend upon tn
volit:on Of the holders of the preser
bonds and it is not entirely certai
that the inducement which must b
offered them would result in more
nancia benefit TO the Governmel
than the purchase OF bonds, while til
latter proposition would reduce TIL
principal of the debt by actual pa,
ment, instead of extending it.
The proposition to deposit the MOI
ey held by the Government in banl
throughout the country, for use by tt
people is, it seems to me, exceeding
Objectionable in principle, as establish
ing too close u relationship betwee
the operations of the GOvernmel
Treasury and the business OF I'll
country, and too extensive in con
mingllng Of their money, thus toste
ing unnatural reliance in private bu
iness upon public funds If TIL
scheme should be adopted it shou
only be done as temporary eXpediel
to meet an,urgent necessity. Legisl
tive and executive effort should gel
orally be
IN THE OPPOSITE DIRECTION,
and should have a tendency to divUrc
as much aud AS fast as can safely
done, the Treasury Department fro
private enterprise. Of course it is n,
expected that unnecessary aud extra
agant appropriations will be made f,
the purpose of avoiding the accumul
ton OF an excess of revenue. Sue
expenditure, beside the demoraIizatit
Of all just conceptions of public du
which it entails, stimulate a habit
reckless improvidence, not in the lea
consistent with the mission Of OF
people or the high and beneficle
purpose Of our Government,
| have deemed it my duty to thu
bring to the knowledge OF my cou
, trymen. as well IA to the attention
their representatives, charged wi
the responsibility of Legislative reli
the gravity of our financial situatio
The failure of Congress heretofore
provide against the dangers which
was quite evident the nature of t
!. difficulty must necessarily produC
caused condition of finaEcial
DISTRESS AND APPREHENSION
since your last adjournment, viii
} taxed to the utmost authority and {
5 pedients within Executive contr,
and these appear now to be exhaust(
If disaster results from the contii u
inaction Of Congress, the responsible
, ty must rest where it belongs.
|, Though the situation thus far &C
6 sidered be fraught with danger whi
should he fully realized, and though
presents features Of wrong to the p
, pie as well ms peril to the country, II
. but result growing ont of II perfec
!, natural and apparent cause, consta
), ly reproducing the same alarming {
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